The main currency pair is trading sluggishly on Monday afternoon, but the key news will only come in the evening.
On Monday afternoon, the euro/dollar is trading without a single dynamic or particular mood. The current quote in the instrument is 1.0625. No particular activity is visible in the main currency pair - investors are waiting for the evening, and saving energy in the run-up to the outcome of the meeting of the US Federal Reserve.
No one expected this - the scheduled meeting of the Fed was to take place only in a month. Apparently, the regulator sees something in the economy and beyond that can carries more weight now. Rather, it will now focus on the discount rate. Increasing it now, the Fed will signal to the market that it is fully prepared to raise its key interest rate at the December meeting. All is fairly consistent: first, the Central Bank removes the reference to inflation risks from the accompanying statement, and then in the "minutes" it emphasizes the creation of necessary conditions for monetary policy tightening. And now an extra meeting.
The first news from this meeting will arrive at 16.30 GMT. Let's wait for all the facts for a full analysis of the situation.
Today's data showed that the index of business activity in the services sector in the euro zone rose to 54.6 points in November against the forecast of 54.1 points. A similar index for the manufacturing sector was 52.8 points against the forecast of 52.3 points. The market barely reacted to the release, being in suspense due to the news from the US Federal Reserve.
Thus, the focus of attention is on the States. The evening promises to be very energetic.
RoboForex Analytical Department
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